Moscow, April 10, 2008. Lemcon and Knight Frank signed a cooperation agreement referring to the collaborative accomplishment of the project of a large industrial park in Kaluga region.

In November 2007 Lemcon signed an investment and cooperation agreement with Kaluga regional government within the framework of an International Forum of economic partnership development between Russia and Finland, organized by Finnish national Fund Sitra. The project provides a complex development of the area, attracts new investments to the region and provides additional jobs for the local residents.

Lemcon has taken possession of the land site of 135 ha in Vorotynsk settlement located not far from the regional centre – Kaluga city. The completion of the project will allow a number of industrial enterprises and logistics centers to start up their production in the nearest future. The total building area to be constructed is up to 500 000 m². There are some unquestionable advantages for the companies willing to locate their enterprises in Kaluga region such as good vehicle access, tax benefits for foreign investors, skilled labor power and all necessary power resources in the region.

A number of big international companies such as “Volkswagen”, “Volvo Trucks”, “Nestle”, “Stora Enso Packaging”, “Lafarge” and “Samsung” have already placed their enterprises in Kaluga. “Peugeot - Citroen” corporate group has also purchased a site for the construction of the own plant at close proximity to Lemcon site.

One of the new ideas in Lemcon and Knight Frank concept is to provide specialized zones to various industry segments. For instance, automobile suppliers can truly benefit from the close proximity of their subsuppliers. Some companies actually value the fact that their competitor is next door. Furthermore, the companies establishing their manufacturing operations first the time in Russia need a great deal of support, which is to be provided by Lemcon and its partners.

Within the cooperation contract set up by Lemcon and Knight Frank, the companies will work together to attract investors and industrial property buyers and promote their project. Knight Frank acts as a project consultant, sales agent of property units and a representative of Lemcon during negotiations.

«When the problems related to the land ownership and infrastructure are solved for the customer, it is easier for him to focus on the quick realization of the overall investment, utilising our western contracting model», – comments Senior Vice President of Lemcon, Mr Juha Höyhtyä. He continues, «As we all know, maintaining the promised production start-up date is the most important thing».

Roman Burtsev, a partner of Knight Frank Russia and CIS: «Construction of industrial park in Kaluga region by Lemcon is an important step in the industrial development of Russia. A good advantage of this offer for western and large Russian investors is the reduction of the political and economical risks during the implementation of their projects in Russia which increases the project’s attraction».

Lemcon

"Lemcon Ltd" is a part of "Lemminkäinen Talo Ltd" which is Finland’s most experienced building construction company and one of the largest. The company has operated in over 70 countries around the world. The operations in Russia started as early as 1972.

Lemcon’s latest references contain a number of remarkable industrial construction projects such as several phases for “Nokian Tyres” tyre plant in Vsevolozhsk, “Elcoteq” electronic plant in St.Petersburg, corrugated cardboard plants for “Stora Enso” in Arzamas and Lukhovitsy, aerated concrete plant for H+H International in Volosovo, glass wool plant for “Saint-Gobain Isover” in Egoryevsk, warehouse complex for Tikkurila in Mytischi and “Svir Timber” saw mill in Podporojie. In Russia the company has also built two multifunctional sport and concert complexes: Tatneft Arena in Kazan and Arena-Metallurg in Magnitogorsk. Further, the company is also building a very modern Art Repository for the State Hermitage. Lemcon is also active in residential construction in St.Petersburg where it is currently building over 600 apartments.

For additional information of Lemcon Industrial Park in Kaluga please refer to http://www.ipark-lemcon.ru/ or contact by phone +7962172-1226 (Marketing Manager of Lemcon Invest). The parent company information is available at: http://www.lemminkainen.fi/.

Knight Frank

KnightFrank was founded in London more than 50 years ago and now is an acknowledged leader on the international real estate market. Together with its strategic partner - the Newmark company, KnightFrank possesses a network of more than 165 offices in 37 countries and more than 5300 specialists. For 110 years Knight Frank has been a symbol of professionalism for thousands of customers all over the world. During 10 years of working in Russia Knight Frank has become the leading company on the market of office, warehouse, trade and residential property. Over 500 large Russian and international companies made use of company’s services entirely in Russia.

For additional information concerning Knight Frank refer to http://www.knightfrank.ru/ and http://www.knightfrank.com/, or contact us by phone +7495981-0000 (Natalia Shlueva, Director of PR Department).